Fair Tax Plan - What Is It?

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

Enables workers to keep their entire paychecks
Enables retirees to keep their entire pensions
Refunds in advance the tax on purchases of basic necessities
Allows American products to compete fairly
Brings transparency and accountability to tax policy
Ensures Social Security and Medicare funding
Closes all loopholes and brings fairness to taxation
Abolishes the IRS

(Source: FairTax.org)

Sounds good to me. You pay for what you spend, not what you earn. No more IRS, no more W-2's, no more tax filing, no more getting screwed.


B-Dub said...

This is actually a legitimate solution, but it will never happen. Between the insanely difficult process from transitioning the IRS out, taking the control of the tax code away from the politicians and implementing the process by which everyone receives their tax rebates for their "basic necessities", it just won't happen. Not to mention, so many Americans these days can't even see past the nose on their own face, they will all crap their pants when they find out that this national sales tax will be approx. 20% to 30% and their not smart enough to do a little bit of thinking to add up what they spend compared to the insane amount of taxes and social security, etc that are withheld from their check. Great idea, but it won't happen, unfortunately.

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